Switch to:
Mylan NV (NAS:MYL)
Beneish M-Score
-2.47 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Mylan NV has a M-score of -2.47 suggests that the company is not a manipulator.

MYL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.39   Max: -0.5
Current: -2.47

-4.39
-0.5

During the past 13 years, the highest Beneish M-Score of Mylan NV was -0.50. The lowest was -4.39. And the median was -2.47.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Mylan NV for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.923+0.528 * 1.0439+0.404 * 1.0679+0.892 * 1.2378+0.115 * 0.6683
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0485+4.679 * -0.0359-0.327 * 0.9103
=-2.47

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $2,587 Mil.
Revenue was 2191.3 + 2490.7 + 2695.2 + 2371.7 = $9,749 Mil.
Gross Profit was 907 + 1062.6 + 1315.3 + 1008.1 = $4,293 Mil.
Total Current Assets was $6,628 Mil.
Total Assets was $22,644 Mil.
Property, Plant and Equipment(Net PPE) was $1,999 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,154 Mil.
Selling, General & Admin. Expense(SGA) was $2,247 Mil.
Total Current Liabilities was $3,959 Mil.
Long-Term Debt was $6,326 Mil.
Net Income was 13.9 + 194.6 + 428.6 + 167.8 = $805 Mil.
Non Operating Income was -16.3 + -134.7 + -50.9 + -2 = $-204 Mil.
Cash Flow from Operations was 80.5 + 652 + 974.8 + 114.7 = $1,822 Mil.
Accounts Receivable was $2,265 Mil.
Revenue was 1871.7 + 2082.7 + 2084 + 1837.3 = $7,876 Mil.
Gross Profit was 830.1 + 969 + 1012.4 + 808.8 = $3,620 Mil.
Total Current Assets was $7,426 Mil.
Total Assets was $22,124 Mil.
Property, Plant and Equipment(Net PPE) was $1,872 Mil.
Depreciation, Depletion and Amortization(DDA) was $606 Mil.
Selling, General & Admin. Expense(SGA) was $1,731 Mil.
Total Current Liabilities was $5,288 Mil.
Long-Term Debt was $5,750 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2587.4 / 9748.9) / (2264.6 / 7875.7)
=0.2654043 / 0.28754269
=0.923

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1062.6 / 7875.7) / (907 / 9748.9)
=0.45967977 / 0.44035737
=1.0439

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (6627.6 + 1998.8) / 22644.1) / (1 - (7426.4 + 1872.3) / 22123.8)
=0.61904425 / 0.57969698
=1.0679

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=9748.9 / 7875.7
=1.2378

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(606.4 / (606.4 + 1872.3)) / (1154.2 / (1154.2 + 1998.8))
=0.24464437 / 0.36606407
=0.6683

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(2246.8 / 9748.9) / (1731.2 / 7875.7)
=0.23046703 / 0.21981538
=1.0485

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((6325.7 + 3959.4) / 22644.1) / ((5750.4 + 5288) / 22123.8)
=0.45420661 / 0.4989378
=0.9103

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(804.9 - -203.9 - 1822) / 22644.1
=-0.0359

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Mylan NV has a M-score of -2.47 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mylan NV Annual Data

Mar06Mar07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.81211.12811.04311.06940.87571.09620.98281.15181.11560.9705
GMI 0.99650.95381.2990.98921.00130.97280.97720.97250.96291.0221
AQI 1.1471.86912.18320.99850.99110.98930.95771.07730.80161.2922
SGI 1.0031.28213.18740.99131.07021.12461.10871.01661.11731.2215
DEPI 1.14441.25550.28791.08471.01630.91751.00411.18880.9820.7039
SGAI 0.86740.74471.53341.00560.96680.99391.04020.99131.03071.0982
LVGI 4.09761.08981.16410.96270.98791.09480.94031.0931.00830.6726
TATA -0.1339-0.0525-0.0554-0.0365-0.0479-0.0145-0.0261-0.0267-0.0026-0.0429
M-score -4.19-1.99-0.34-2.58-2.75-2.41-2.54-2.44-2.39-2.32

Mylan NV Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.15181.08471.02620.9251.11561.19791.37681.3890.97050.923
GMI 0.97250.97110.98020.97140.96290.95950.97320.98611.02211.0439
AQI 1.07731.10621.11660.91230.80160.95630.951.20971.29221.0679
SGI 1.01661.02181.03951.09111.11731.12621.17971.21171.22151.2378
DEPI 1.18881.19231.18651.08080.9820.95850.83440.75670.70390.6683
SGAI 0.98660.98951.06641.05611.04181.08031.06061.04991.09821.0485
LVGI 1.0930.92451.01161.03951.00830.73450.73270.66530.67260.9103
TATA -0.0267-0.0372-0.0398-0.0249-0.0026-0.00380.0009-0.0249-0.0429-0.0359
M-score -2.44-2.48-2.56-2.65-2.39-2.17-1.95-1.90-2.32-2.47
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK